New Delhi: Article 112 of the Indian Constitution provides that the government will present a statement of its estimated receipts and expenditure for the next financial year, which begins on April 1 and ends on March 31 in the next year, to the Parliament. This is called the Annual Financial Statement and is generally referred to as Union Budget. Article 110 of the Indian Constitution requires the government to present a Finance Bill to give effect to tax proposals contained in the Annual Financial Statement.
At the time of presentation of the Annual Financial Statement before the Parliament, a Finance Bill is also presented to fulfil the requirement of Article 110 (1)(a) of the Constitution which with the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget. It also contains other provisions relating to the Budget that could be classified as Money Bill.
A Finance Bill is a Money Bill as mentioned in Article 110 of the Constitution. Article 110, which deals with the definition of Money Bill, lays down certain conditions for a Bill to qualify as a Money Bill.
Clause (1) (a) of Article 110 says that a Bill will be considered a Money Bill if it deals with the imposition, abolition, remission, alteration or regulation of any tax and other provisions mentioned in the sub-clauses (a) to (f) of clause 1 of Article 110. These provisions deal with the regulation of the borrowing of money based on any guarantee by the Government of India. A Bill will be a Money Bill if it amends any law or deals with the financial obligations undertaken or to be undertaken by the Government of India.
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The Article also deals with the custody of the Consolidated Fund and the Contingency Fund of India and payment of money into or the withdrawal of money from these funds. A Bill, such as the Finance Bill, will be considered a Money Bill under the Constitution if it deals with the appropriation of any money out of the Consolidated Fund of India or declares that any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the number of such expenditures.
If expenditure is declared Expenditure Charged on Consolidated Fund of India, for example, payment of interest or repayment of loan taken by the Government, then it does not require voting in Parliament for withdrawal of money from the Consolidated Fund of India.
The Constitution also provides that a Bill will be considered Money Bill if it deals with the receipt of money in the Consolidated Fund of India or the Public Account of India. Also, a Bill will be a money bill if it deals with the custody or issue of such money or the audit of the accounts of the Union or of a State and matters incidental or related to other matters listed in the sub-clauses (a) to (f) of Article 110 (1).
